Satyam board appoints internal auditor

Satyam board appoints internal auditor
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First Published: Sat, Jan 17 2009. 07 53 PM IST
Updated: Sat, Jan 17 2009. 07 53 PM IST
Hyderabad: The newly constituted board of troubled Satyam on Saturday said it was looking for funds, for which it has opened a dialogue with lenders, to ensure salaries to employees and normal business operations, even as the search for a new CEO and CFO continued.
Meeting for the second time in a week, the board is still awaiting appointment of chairman by the Centre and till such time each of the six directors would take turns to chair the meeting that would be held on a weekly basis.
Outlining the priorities, the company said in a statement after the meeting that “addressing the issue of liquidity the board confirmed that it is engaged in discussions with banks and financial institutions.
Also Read The Satyam Fiasco (Full Coverage)
“The last week had seen definite improvements on collection and this is expected to be a major priority for the business leaders and the board in the ensuing weeks. All efforts are being made to ensure that associates (employees) are paid their salaries on time.”
Incidentally, representatives of a few lenders, including Citibank and ICICI Bank, visited the Satyam headquarters here, presumably for discussions with the new leadership of the IT company.
The board, which was expanded on Thursday by the government with induction of three more members, also discussed scheduling of vendor payments.
The meeting also constituted an audit panel and appointed legal advisers - Amarchand & Mangaldas, Suresh A Shroff & Co - to the board, and internal auditors - Brahmayya & Co.
The board reposed its faith on employees and customers, saying it was confident of the employees and their ability to continue delivering high quality work and continued support from the customers, which it said “is a very encouraging sign.”
Confirming that search for a CEO and CFO was continuing, the meeting decided that till such time these appointments were concluded, “the board will continue to meet on a weekly basis to address ongoing issues.”
In its statement, the company said that the business leaders made a detailed presentation to the board, which in turn asked them to lead their respective operations seamlessly.
“The board members reiterated that they are in touch with key customers and have so far not heard of deliveries being affected in any way,” the statement said.
The board had exhaustive deliberations on matters relating to “enhancing liquidity, leadership issues and customer concerns,” it said.
The audit committee, which would be very crucial given the constitution of the board by the government to salvage the scam-tainted company, would comprise of noted chartered accountant and past president of ICAI T N Manoharan, former Sebi member C Achuthan and LIC’s S B Mainak.
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First Published: Sat, Jan 17 2009. 07 53 PM IST
More Topics: Satyam | Board | Deepak Parekh | Ramalinga Raju | Fraud |